Kingfish Co revenue jumps 90% year on year
Land-based farmer's sales worth €5.4m in Q3 due to higher prices and more fish sold
Dutch yellowtail farmer The Kingfish Company nearly doubled the value of sales in the third quarter of this year compared to the same period last year as a result of increased sales volumes and price achievement, it said in a market update today.
Sales revenue increased by 90% from €2.8 million in Q3 2021 to €5.4 m, and sales volume rose by 69% to 392 tonnes WFE (whole fish equivalent).
The company’s average achieved price for large fish in Q3 was €17.1 per kilo WFE, a 25% improvement on Q3 2021.
Average price for small fish was €12.1 per kg WFE, up 14% year on year.
The update does not include any profit or loss figures for the company, which stated in July that it was “EBITDA positive” for the year to date.
The Kingfish Company grows yellowtail kingfish (Seriola lalandi) in a recirculating aquaculture system (RAS) in Zeeland, Netherlands, and is currently expanding the facility.
“The third quarter of 2022 was another solid quarter where we have stabilised at full capacity run-rate for phase 1. We are now ready to launch capacity for phase 2, which is nearing completion,” said chief executive Ohad Maiman.
“We are pleased to report another quarter with strong sales growth, significant sales price increases, particularly for large fish, while achieving robust steady production and consistently high productivity.”
More net growth
The company produced 374 tonnes of net growth in Q3, compared to 334 tonnes of net growth in the same quarter last year, which was the first quarter at full run-rate of current installed capacity.
Phase 2 expansion at Zeeland, which will increase capacity to 3,500 tonnes, is fully financed, the company said. It is raising €35 m through an equity raise, which is fully subscribed and guaranteed for all three tranches.
The equity raise together with other financing and available cash is estimated to fully finance the Phase 2 capital expenditure with a buffer. The additional funds would also be available for biomass build up and general corporate purposes, said the company.
The fish farmer has started the production of fingerlings for the pre-stocking of Phase 2, and production is set to commence early in the first quarter of next year.
“The significant volume increase is expected to result in material improvements to unit economics, building on an already strong basis,” the company said.
The Kingfish Company is also planning a land-based yellowtail farm in Jonesport, Maine, in the eastern United States, which will have a phase 1 capacity of 8,500 tonnes.
The company’s US subsidiary has secured all state and federal permits but hasn’t yet been given the green light from the local town planning board.